The Hindu : Andhra Pradesh News : `Postpone transfer of PPAs to discoms'

Online edition of India's National Newspaper
Saturday, May 28, 2005

Andhra Pradesh

Andhra Pradesh

`Postpone transfer of PPAs to discoms'

Staff Reporter

Present system of Transco trading in purchase, sale of power termed best

HYDERABAD: A round table conference on `transfer of Power Purchase Agreements (PPAs) to Distribution Companies (DISCOMS)' organised by the Institution of Engineers here has resolved to request the State Government to take up with the Centre postponement of the exercise by one more year.

The proposal was mooted by an AP Transco engineer, K. Raghu, who said the Electricity Act, 2003, provided powers to the State Governments to seek extension of time within two years of the enactment.

He felt there was no apparent advantage in allocation of PPAs to discoms.

On the other hand, there was a definite advantage in transferring the PPAs to the AP Generation Corporation (APGENCO) as there could be a pooling of generation activity.

He said the present system of Transco trading in purchase and sale of power was the best or Genco could be asked to handle the job as an alternative option.

Mr. Raghu said feedback had shown that none of the States were willing to implement Sec. 39 of Electricity Act which provided for separation of trading function from Transco from June 10. Even the individual discomd were unwilling because of the problems involved.

Former APSEB Chairman, K. Balram Reddy, said there should not be any difficulty in discoms handling the function of trading in power. The problems inherent in the transfer of PPAs could have been sorted out by now had the rule been implemented since last year.

He did not favour the idea of setting up a separate company and creating capital for it to do business.

Such a company also had to pay a licencing fee to the Andhra Pradesh Electricity Regulatory Commission, increasing the burden on the consumer.

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